A consortium including Microsoft and telecom startup Lightstorm has announced plans to build a new undersea cable system connecting India with Malaysia and Singapore, as global technology firms accelerate investment in artificial intelligence and cloud infrastructure across rapidly expanding digital markets, according to statements from the companies on Thursday.
The project, named the I-2SEA cable, is being developed by a group that also includes Tata Communications, Singapore Telecommunications, Singapore’s ASEAN Cableship, and Japan’s NEC Corporation. The consortium said the system will be designed to support artificial intelligence, cloud computing, and hyperscale workloads, though it did not disclose the total investment required for the project.
The planned network will stretch approximately 3,600 kilometers, linking India’s eastern coast with key Southeast Asian hubs. Landing stations will be established in Machilipatnam in the southern Indian state of Andhra Pradesh, an area where Meta and Alphabet have previously announced data center investments, highlighting the region’s growing role in global digital infrastructure.
According to Lightstorm Group Chief Executive Officer and Managing Director Amajit Gupta, the cable is expected to be operational in the fourth quarter of 2029. Gupta told Reuters in an interview that the system is intended to strengthen regional connectivity for high-capacity computing demands driven by artificial intelligence and cloud services.
Lightstorm, which is backed by private equity firm I Squared Capital, currently operates a terrestrial fiber network connecting 19 artificial intelligence and cloud zones across India. The company said the new undersea system would expand that network to 29 zones, further integrating domestic infrastructure with international data routes.
The announcement comes amid accelerating investment in India’s digital infrastructure, driven by rising demand for data storage, cloud computing, and AI processing capacity. Industry projections cited in the source material indicate that India’s operational data center capacity could double from 1.4 gigawatts by 2027, based on projects under construction, and potentially increase five-fold by 2030 if planned developments are expedited.
Undersea cables remain a critical backbone of global communications, carrying approximately 95% of international internet traffic. India currently operates 17 active submarine cable systems with a maximum potential capacity of 960 terabits per second, while at least 10 additional systems have been publicly announced, according to telecommunications research firm TeleGeography.
The I-2SEA project adds to a broader wave of infrastructure expansion as technology companies compete to secure bandwidth and reduce latency for AI-driven applications. The consortium’s focus on linking India with Southeast Asia reflects the region’s increasing importance in global data flows and cloud computing ecosystems.
Separately, Lightstorm has indicated plans to pursue an initial public offering in India by mid-2027, according to its chief executive, though further details were not disclosed. Earlier media reporting cited a potential valuation target of up to $1.5 billion for the company, underscoring investor interest in digital infrastructure platforms aligned with AI and cloud growth trends.
